AT&T Wireless Posts Quarterly Loss Despite Revenue Growth
Carrier posts greater-than-expected loss even though revenue was up 15%, due to expanded subscriber base.
REDMOND, Wash. (AP) -- AT&T Wireless Services Inc., one of the largest cell phone providers, Tuesday reported a fourth-quarter net loss 3 cents per share larger than analysts expected.
However, revenue surged more than 15% to $3.74 billion, as the Redmond, Wash.-based company expanded its subscriber base.
The net loss came to $131 million, or 5 cents a share, compared with a loss of $1.28 billion, or 48 cents a share, a year ago.
The mean estimate of analysts surveyed by Thomson First Call was for a fourth-quarter loss of 2 cents a share.
Though AT&T Wireless added 705,000 subscribers in the quarter, it was a decrease of 23.9% compared with the same period last year.
Mobility operations earnings before interest, taxes, depreciation and amortization rose 38% to $919 million in the latest quarter, thanks to revenue growth.
AT&T Wireless said it expects to report services revenue growth in the range of 5% to 7% for full-year 2003. The growth percentage for earnings before interest, taxes, depreciation and amortization is expected to be in the low double-digits.
Total 2003 capital expenditures will likely come in around $3 billion.
The Business of Going DigitalDigital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Join InformationWeek’s Lorna Garey and Mike Healey, president of Yeoman Technology Group, an engineering and research firm focused on maximizing technology investments, to discuss the right way to go digital.